Bermuda has been highlighted as an area of concern in a report into the governance of overseas territories, due to allegations of corruption.

Delivering the Seventh Report on Overseas Territories to the UK Government yesterday, the Parliamentary Foreign Affairs Committee (FAC) spoke on their inquiry in the Turks and Caicos Islands, during which they discovered "there was a deep concern... about free speech".

FAC Chairman Mike Gapes, Labour MP for Ilford South, said the Committee received more than 200 submissions from residents of Britain's 14 Overseas Territories. More than 50 of these came from the Turks and Caicos, most alleging corruption in government.

However, he added: "I also have to flag up we received allegations of corruption in our inquiry in relation to other overseas territories, including in Bermuda and in Anguilla."

Mr. Gapes said: "On Anguilla the committee recommended the (UK) Government should encourage the Anguillan Government to introduce anti-corruption measures and to hold an independent inquiry into the allegations that the Ministers accepted bribes from developers."

However, he said: "The Government has declined to do so. It has told us 'no substantive evidence has come to the Governor's attention that Ministers accepted bribes from developers'. And the Chief Minister of Anguilla has publically rejected the allegations.

"Nevertheless, the Governor will ask the Government how they plan to deal with the allegations made to the Committee (FAC)."

He said: "In a letter to the Committee, the Anguillan Government said they were 'not disposed to sanction a system of governmental accountability based on gossips, rumour and unproven innuendo'. They requested the Committee provide more evidence in relation to the allegations.

"I have to say, given we were originally told by the Foreign and Commonwealth Office that there were lots of allegations in the Turks and Caicos but no evidence, I'm not entirely reassured by the position that has been taken so far. I would ask the Minister to reassure us in her remarks that the Government is looking closely at these matters."

Mr. Gapes said: "Similarly on Bermuda we also received some allegations of corruption and also electoral fraud.

"But no detail was provided on the investigations into the issuing of contracts, as the Committee has recommended."

He said: "The (UK) Government has pledged to encourage Overseas Territories to promote transparency and, where necessary, to improve public accounting and auditing capabilities."

Three British MPs visited the Island in March 2008 as part of the audit of the UK's 14 Overseas Territories. It was the first inquiry of its kind for ten years and examined standards of governance, the role of Governors, transparency and accountability, regulation of the financial sector, human rights and the relationship between the Territories and UK Parliament.

The FAC delegation met with politicians, unions, businesses and held a public forum. Members of the public were also encouraged to send in individual submissions detailing areas of concern.

The report from the inquiry has made several recommendations to the UK Government as to how to improve the governance of Overseas Territories.

Following the inquiry in the Turks and Caicos, Britain suspended much of the country's Constitution and handed power over to the Governor.

Premier Michael Misick resigned last month after a Commission of Inquiry found "clear signs of political amorality and immaturity" plus a "high probability of systemic corruption" in Government. Galmo Williams has now been appointed Premier.

Yesterday Mr. Gapes said: "When we set up our inquiry we were shocked by the very large number of submissions that we had from the Turks and Caicos Islands, because in its submission to us the Foreign and Commonwealth Office didn't refer to issues in the TCI as being of particular concern, and it expressed no concern about corruption or standards of governance."

He said: "Many people wrote to us in confidence, afraid that their names might be revealed, alleging corruption especially in regard to the sale of Crown land, distribution of contracts, development agreements, the grant-ing of so-called belongerships, and misuse of public funds by Mr. Michael Misick and his cronies and relatives.

"And I have to say there was also a deep concern, and this was borne out by my colleagues when they visited the TCI, about free speech and the ability of people to even be seen talking to Members of this House.

"People wished to only speak to them in confidence, away from the eyes of friends or officials of the administration. Now that was extremely worrying and we reported back on that."

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